The FCC’s Schools and Libraries Universal Service Support Mechanism -- also known as the E-rate program -- is a significant source of fed. funding for info. tech. for schools and libraries, providing $2 billion a year. This report assessed issues related to the E-rate program's long-term goals, including: (1) key trends in the demand for and use of E-rate funding and the implications of these trends; (2) the rate of program participation, participants' views on requirements, and FCC's actions to facilitate participation; and (3) FCC's performance goals and measures for the program and how they compare to key characteristics of successful goals and measures. To perform this work, the auditor surveyed a sample of participating schools and libraries. Illus.